The Funds Record Short Corn
Friday afternoon after the grain markets closed the Commodity Futures Trading Commission released the Commitment of Traders Report. It showed that the managed money accounts or funds were short or sold 261,000 corn contracts as of last Tuesday. The funds were also short 61,000 bean contracts. That represents a lot of bushels of corn and soybeans that the funds have sold. Remember, each contract represents 5,000 bushel of grain.
You have to wonder what it will take to get the funds to begin to cover or buy back those positions? Even with the trade war China has been buying a lot of beans. Remember early this summer the USDA increased the U.S. Carryover to about 950 million assuming China would not buy any U.S. beans. Last week it was announced that China bought a large amount of U.S. corn which has not happened for quite some time. Record flooding in parts of Iowa and a lot on Nebraska has not been a concern of the market either.